Sample Private Placement Memorandum for Distressed Real Estate Investment Fund

Table of Contents

            1. Important Notes
            2. Summary of the Offering
                  2.1. The Fund
                  2.2. Securities Being Offered
             3. Suitability Standards
            4. Risk Factors
                  4.1. Risks Related to the Business
                  4.2. Risks Related to the Offering
            5. Capitalization of the Fund
            6. Sources of Funds and Use of Proceeds from the Offering
                  6.1. Sources of Funds
                  6.2. Use of Funds
            7. Dilution
            8. Plan of Distribution of Securities
            9. The Business of the Fund
                  9.1. Fund Background
                  9.2. Investment & Growth Strategy
                  9.3. Properties
                  9.4. Property Management
                  9.5. Industry & Market Trends
                        9.5.1. Economic Outlook for Florida
                        9.5.2. Ongoing Market Evaluation                      
                  9.6. Competition
                        9.6.1. Competitive Edge
                  9.7. Employees
                  9.8. Fund Headquarters
                  9.9. Legal Proceedings
            10. Management and Compensation
                  10.1. General Members
                  10.2. General Member Liability and Indemnification
                  10.3. Executive Compensation
            11. Certain Transactions
            12. Principal Members
            13. Description of Membership Interests
            14. Cash Distribution to Members
            15. Restriction on Transfer
            16. Tax Considerations
                  16.1. Federal Taxation of the Fund
                  16.2. Basis and At-Risk Limitations
                  16.3. Passive Loss Limitations
                  16.4. Gains and Losses on Sale of Properties
                  16.5. Accounting Methods
                  16.6. Accountants
                   16.7. Other Regulations
            17. Documents Available for Inspection
            18. Additional Information
            19. How to Subscribe
            20. Exhibits
                  20.1. Financial Statements
                        20.1.1. Projected Profit & Loss Statements
                        20.1.2. Projected Cash Flow Statement
                        20.1.3. Pro Forma Balance Sheet
                        20.1.4. Important Assumptions
                  20.2. General Member Biographies and Track Records
                  20.2. Form of Subscription Agreement
                  20.3. Prospective Purchaser Questionnaire
                  20.4. Prospective Purchaser Questionnaire (Entities)
                  20.5. Glossary of Terms
                       20.5.1. General
                       20.5.2. Financial
 

 

Below is the complete history of this publication along with updates and summaries of important legal or procedural changes that affect the latest edition of this document. 
 

10/02/2009	Initial Release of Document
09/28/2010	Document update pursuant to new SEC Compliance and Disclosure Interpretation (CDI) for Accredited Investor definition

 

 

by Majestic
July 23, 2010

Very helpful and a great value!
Our lawyer was extremely pleased with the quality and thoroughness of this private placement memorandum. He billed us only 1 ½ hours for rendering his final review. Although our company is connected to one of the premier real estate brokers for luxury homes in Miami Beach, I found Fast Ventures’ portfolio of distressed residential properties extremely helpful in establishing an initial track record for the fund. This is an excellent value. Thanks.